Interest rate cut sends Norwegian krone lower against euro and dollar, Finance Minister Stoltenberg calls on banks to lower lending rates, and other news from Norway on Friday.
Norwegian krone drops following first interest rate cut in five years
Norges Bank, the country’s central bank, cut its key interest rate on Thursday for the first time in five years, triggering an immediate decline in the value of the Norwegian krone.
READ MORE: How will Norway’s shock interest rate cut affect your finances?
Shortly after the announcement, the krone weakened against both the euro and the US dollar.
The euro rose to 11.55 kroner from 11.47 kroner earlier in the day, while the dollar increased to 10.08 kroner, up from 10.00 in the first part of the day.
The central bank also signalled that further easing could follow.
“The forecast for the key interest rate in this report decreases to just under 4 percent by the end of the year and further to about 3 percent towards the end of 2028,” the bank stated.
Finance Minister Stoltenberg urges banks to lower lending rates
Norway’s Finance Minister Jens Stoltenberg has expressed strong support for Norges Bank’s interest rate cut on Wednesday, calling it good news for Norwegian borrowers.
“Today is a good day for everyone with housing debt,” Stoltenberg told the Norwegian Broadcasting Corporation (NRK) after the central bank lowered the key interest rate by 0.25 percentage points to 4.25 percent.
He noted that the move signals a strengthening of the Norwegian economy.
“It reinforces a positive development in the Norwegian economy. What is also pleasing is that it shows that the Norwegian economy is on the right track,” he said.
Stoltenberg also called on banks to pass the rate cut on to consumers.
“Now I expect the banks to follow suit and quickly lower lending rates for everyone who has a loan,” he added.
DNB and Nordea announced cuts on Thursday.
Advertisement
American woman sues SAS for 100 million kroner over in-flight coffee spill
A 78-year-old woman from New York is suing Scandinavian Airlines (SAS) for 10 million US dollars (approximately 100 million kroner) after allegedly being burned by hot coffee during a flight last year.
The incident occurred on a flight between Copenhagen and Oslo in April 2024.
According to the lawsuit, a flight attendant accidentally spilt “extremely hot” coffee on the woman while serving her, resulting in “severe burns, pain, suffering, and psychological distress.”
In addition to her claim, the woman’s husband is seeking an additional 1 million US dollars (around 10 million kroner) in compensation.
SAS’s press manager in Norway, Øystein Schmidt, confirmed to Norwegian outlet Sol that a legal process is underway but declined to comment further on the case.
Advertisement
Explosion reported at Norwegian official residence in Tel Aviv
The Norwegian Ministry of Foreign Affairs has confirmed an explosion at the official residence of its diplomatic staff in Tel Aviv.
No embassy employees were injured in the incident, according to an email from Head of Communications Tuva Bogsnes to the Norwegian news bureau NTB.
“We have been in contact with the embassy this evening, and Israeli police have been on site,” Bogsnes said on Thursday.
“Safety for our employees is our highest priority,” she added.